Planning: Never a Bad Thing in the Loan Biz

Our brokers find that a little advice before their client actually applies for a mortgage can go a long way toward making the process flow more smoothly. Even if it is years prior to buying a home.

Rent a home first will give your client an understanding on the upkeep costs without the actual expense of correcting and maintaining the home. Also, renting will lower your client’s payment shock of incurring a new large monthly payment, and Orion pays attention to the consistency in paying monthly obligations.

You will want to check your client’s credit score and reports to see what Orion, and any lender, will need to see. Brokers know it takes a lot of time to fix credit related issues – and they want to see it, just like a doctor wants to see the blood test results. Besides, brokers know a higher credit score usually results in a better rate and lower payment. Add value to your client!

Your clients should pay down debts and put spending on hold. Assets should be organized, and documented, since your client will need them for a down payment, closing costs, and for reserves. Keep in mind, having the funds is only part of the equation.

Orion’s brokers know to look for “red flags.” Underwriters look for unusual or large changes to your client’s financial life. Large deposits will require an explanation and proof of its source. Make sure assets are in your client’s own account (not their spouse’s or parent’s) well in advance and that it makes sense based on what your client does for a living. No more lawn mowers earning $10k/month.

Help your client decide on a loan type. Brokers know that not everyone wants or needs a 30-fixed mortgage. Research helps ensure it’s a more objective choice, and not just a blind, generic, or biased one.

Ask your client about how long they will live there. This can go hand-in-hand with the type of loan you’re considering. If your client knows or has a good idea how long they’ll keep the property, it can be instrumental in loan choice.

Talk to your clients about mortgage rates. Where do they come from? Why are they different? Why do they move up and down? These are all important questions you should have the answers to and that your Orion AE can help with. The intricates of rates can become very complex but a basic understanding of the fundamentals is a must.

Do your “Lender” homework. We know that there are other wholesalers but believe that our brokers see the difference in service and price. Remember, real estate agents influence lender choice for nearly half of home buyers, so show them that you can add value before the application process even starts.

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